Exploring Global Trade and Marketing Strategies

Which of the following best describes the theory of comparative advantage in global trade?

• Countries should produce everything they need themselves.

• Countries should specialise in producing goods where they have a lower opportunity cost.

• Countries should only trade with their neighbours.

• Countries should avoid international trade to protect local jobs.

Which market entry mode involves a company granting another firm the right to use its brand and business model in exchange for a fee?

• Exporting

• Franchising

• Joint Venture

• Direct Investment

What is the primary purpose of international trade agreements?

• To increase tariffs between countries

• To facilitate smoother and fairer trade between member countries

• To restrict the movement of goods

• To promote protectionism

Which of the following is a cultural consideration that international marketers must take into account?

• Local language and communication styles

• Exchange rates

• Shipping costs

• Tariff rates

What is a tariff?

• A tax on imported goods

• A type of trade agreement

• A method of market entry

• A cultural barrier

Which of the following is NOT a trade barrier?

• Quotas

• Tariffs

• Free trade agreements

• Import licences

Which of the following is a benefit of e-commerce in international trade?

• Increased shipping costs

• Limited market reach

• 24/7 global accessibility

• Higher tariffs

Which of the following countries is NOT a member of the European Union?

• France

• Germany

• Norway

• Italy

NAFTA is a trade agreement between which three countries?

• United States, Canada, and Mexico

• United Kingdom, France, and Germany

• China, Japan, and South Korea

• Australia, New Zealand, and Singapore

Which market entry strategy involves a company setting up its own production or business operations in a foreign country?

• Licensing

• Direct Investment

• Exporting

• Franchising